Gift Card Market

Gift Card Market Outlook (2024 to 2034)

The global gift card market size is estimated to be valued at US$ 4,80,560 million in 2024. The market is estimated to register a promising pace of 10.4% CAGR and accumulate a total of US$ 12,92,523.2 million by 2034.

Gift cards have been gaining considerable popularity owing to their utilization as a marketing technique over the last couple of years. Brand owners and merchants frequently utilize gift cards to enhance their customer loyalty programs, boost referrals and consumers’ perceived value, and sustain customers.

Brand owners and retailers believe that gift cards lure consumers’ interest and engagement. Therefore, the utilization of gift cards for customer loyalty programs is projected to rise. Additionally, its adoption is expected to benefit from these players attempts to turn potential customers into devoted ones.

Leading Growth Determinants of the Gift Card Market

• Solid demand rate from business as well as retail markets. Numerous retail sectors are engaged in the gift card market, and ever since mobile payments have surged in use, OTT and content platforms, travel companies, and mobile payment providers have also jumped on the bandwagon.
• Companies in the food and beverage sector, for instance, Domino’s, Starbucks, Pizza Hut, and KFC, are luring customers by using gift cards and vouchers with attractive deals and discounts.
• Travel companies like Thomas Cook, Cleartrip, and Ola are also providing discounts of up to 10% for short trips, staycations, and workstations to get the most out of this trend.
• Digital gift cards are becoming more popular than physical ones. After recognizing virtual cards' significant benefits, several shops began using e-gifting. Since these cards are directly sent to the beneficiary via SMS or email in the form of links and codes, they are rated highly due to their usage and operational flexibility.
• Virtual cards are observing significant acceptance due to the swift uptake of digital payment systems.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 4,80,560 million
Forecasted Market Value (2034F)	US$ 12,92,523.2 million
Global Market Growth Rate (2024 to 2034)	10.4% CAGR
E-Gift Cards Segment Growth Rate (2024 to 2034)	14.4% CAGR
Medium (between 200-400 US$) Segment Growth Rate (2024 to 2034)	10.8% CAGR
North America Market Share (2024)	35.1%
East Asia Market Share (2024)	25.3%
Key Companies Profiled in the Gift Card Industry Report	Gyft Edge Loyalty Systems Pty. Ltd. InComm Blackhawk Network Holdings, Inc. The Up Group Edenred Group National Gift Card Corporation Walmart Stores QwickSilver Solutions Target Corporation Best Buy Company, Inc. Starbucks Corporation Best Buy Company, Inc. Amazon.com, Inc. Others

Which Trends are Positively Influencing the Gift Card Market?

“Increased B2B Sales to Drive Up the Market for Gift Cards”

Several big and small businesses are presently focusing on increasing employee engagement by recognizing and rewarding employees with dedicated gift cards. Numerous multinational firms are making efforts to motivate and inspire workers to give their maximum effort to reach more significant goals together. Such initiatives from small and multinational enterprises are projected to propel the rapid adoption of gift cards.

“Industry Players Strengthen their Position Via Strategic Alliances and Bonding”

Leading players in the market are pursuing greater market share acquisition. For this, they are actively buying, collaborating, or forming alliances with other market participants to raise their market presence.

In 2020, for instance, Blackhawk Network announced the acquisition of NGC (National Gift Card), which is a card and prepaid tech firm. The firm has successfully invigorated its incentive solutions on the back of this acquisition. Additionally, it is expected that the actions of these players are expected to set the degree of rivalry and market trends.

Which Challenges Restrict Market Growth?

“Gift Cards’ Impersonal Nature Affects its Takeup Among Consumers”

The impersonal nature of gift cards is a highly restrictive factor that challenges the players in the gift card market. Giving gift cards suggests an absence of enthusiasm and eagerness on the part of gift-givers. Therefore, consumers are increasingly searching for personalized gifting solutions, and in the process, this is negatively impacting the product sales.

“Increased Access to Gifting Solutions Restrict Demand for Gift Cards”

The proliferation of eCommerce platforms like Flipkart Inc. and Amazon.com Inc. is permitting consumers to select from an extensive range of products for gifting purposes. eCommerce platforms are a convenient way of purchasing gifts and ensuring that users promptly receive the products. For instance, Amazon.com, Inc., ascertains its members for same-day delivery in selected metro cities across the globe. Therefore, consumers prefer to give gifts from this category instead of impersonalized gift cards. The innate proclivity of consumers toward gifting gifts instead of gift cards provides hurdles for leading market players.

Country-wise Insights

The North America gift card market is expected to acquire a market share of 35.1% in 2024. The regional market value is expected to rise from US$ 1,68,677 million in 2024 to US$ 4,42,043 million by 2034. Through this period, the market is expected to register a CAGR of 10.1%.

The East Asia market is projected to obtain a value share of 25.3% in 2024. The market value of this regional market is expected to rise from US$ 1,21,582 million in 2024 to US$ 3,42,519 million by 2034. The market in the region is anticipated to expand at a CAGR of 10.9% through 2034.

Which Factors Propel Market Growth in the United States?

“Extensive Use of Non-cash Incentives by Commercial Sectors Augment the Market in the United States”

The gift card market share in the United States is expected to reach 81.2% in North America in 2024. The market valuation is expected to reach US$ 1,36,965.4 million in 2024 and US$ 3,55,844.6 million by 2034. Through 2034, the sales of gift cards in the United States are expected to expand at a CAGR of 10%.

The prevalent use of digital technology in the United States is substantially influencing the increase in e-gifting. Non-cash incentives like incentive trips, gift cards, and reward points are utilized by a surging count of commercial sector organizations in the United States to acknowledge and reward the performance and efforts of main suppliers, workers, and partners.

The widespread incentive culture in the United States hints at the significant potential for the growth of gift card players in this region.

Which Factors Contribute to Market Growth in China?

“Changing Approach of Millennials Catalyzing the Demand for Gift Cards”

The China gift card market is projected to acquire a share of 60.7% in East Asia in 2024. The market is estimated to be valued at US$ 73,800.1 million in 2024 and expand at a CAGR of 10.7% thereon. A gradual shift among millennials toward gift cards instead of physical presents is propelling market growth.

Increasing demand for practical and simple solutions in all situations, such as gifting, owing to the chaotic and busy nature of present times, is augmenting market growth. Such a mentality is drawing and motivating people to opt for gift cards over physical presents.

Segment-wise Insights

Which Segment Leads the Type Category?

“E-gift Card Segment Stands the Market Forefront”

Physical cards have enjoyed prominence in the historical period based on type. As per the latest estimates, the segment acquired a share of 51.7% in 2019. However, the tables are turning in favor of e-gift cards, as consumers are now increasingly seeking digital or virtual cards. This shift is being propelled as an increasing number of consumers assume responsibility for the environment. Additionally, the convenience and ease of tracking and redeeming e-gift cards are also catapulting the sales of these cards.

In 2024, the e-gift card segment is projected to acquire a market share of 51.3%. Ten years from now, the online gift card segment is expected to enjoy dominance in the market, with an estimated share of 73.5%. Based on CAGR, the segment is expected to expand at a CAGR of 14.4% through 2034.

Which Segment Stays atop the Price Range Category?

“Medium (between 200 to 400 US$) Takes the Market Lead”

The medium (between 200 to 400 US$) segment is expected to capture 46.8% in 2024. By 2034, this segment is projected to enjoy a market share of 48.6%. Recent stats for value generation in the medium (between 200 and 400 US$) segment is US$ 2,24,902 million in 2024 and US$ 6,28,166 million by 2034. Increasing affordability for medium-range gift cards is increasing sales.

Competitive Landscape

The gift card market paints a lucrative picture for active players, thus attracting a significant number of participants in the market. Key players are, therefore, intensifying their penetration by making greater investments in the market.

Market players are constantly innovating to raise their market presence. Currently, they are riding on the digital wave to increase their relevance in the market. Rising e-commerce is fueling the popularity of e-gifting, which provides prompt delivery and convenience to both recipients and buyers. To leverage this trend, companies are concentrating their efforts on integrating with eCommerce portals and user-friendly platforms.

Incorporating gift cards into mobile wallets raises the accessibility and convenience of mobile wallets, thereby increasing their attractiveness among users. Further, digital platforms permit personalized gift cards with custom messages, designs, and video attachments, making them more engaging and special. This is contributing to its popularity among end users.

Market players are further forming strategic alliances and partnering with other service providers, retailers, and even financial institutions to increase their reach and provide multi-brand gift cards. This is widening the redemption options and capturing a broader customer base.

Key players are going beyond traditional ways by creating gift cards for charities and unique experiences to tap into the emerging trend of socially conscious consumerism. Key players in the gift card industry continue to evolve their offerings and become an even more integral element of our shopping experience.

Recent Developments Spearheading the Market Growth :

• In October 2020, PRNewswire published an article called ‘Demand for digital gifting charts a new trajectory of more personal e-gift cards present on Giftcards.com.' The company widened its digital gift card offers. They offer an extensive range of unique cards to their consumers who seek more personal gifts. Each card is designed for a certain occasion, particular cause, or recipient.
• In April 2021, retailers' gift cards gained potential entry points to facilitate customers into a closed loop of payment, ordering system, and membership. They can influence users to adopt new expenditure habits. For example, the Starbucks Gift Card is designed for gifting and offering customers an easy payment mode. Thus raising the frequency of store visits and increasing sales automatically.

Segmentation of Gift Card Market Research

• By Type:

  • E-Gift Cards
  • Physical Cards

• By Price Range:

  • High (Above US$ 400)
  • Medium (between 200 to 400 US$)
  • Low (Below US$ 200)

• By Region:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia and Oceania
  • The Middle East and Africa